Amidst the mixed signals from the Indian government regarding the cryptocurrency ban, Indian crypto exchange WazirX and other crypto stakeholders have reportedly joined hands. They have assembled and are continuously working towards convincing the government to adopt regulations and dissuade it against a possible crypto ban.
According to a report published in The Economics Times, India’s blockchain and crypto council which is also known as arm of the Internet and Mobile Association of India, or IAMAI has reported proposed a regulatory framework to the government which contains measures to address issues like money laundering and threats to rupee monetary sovereignty in the country.
WazirX CEO, Nishchal Shetty has said that that he is aware of the government’s negative stance on crypto which is why it is important to adopt a pro-active approach to make the government re-think about its stance.
Thus, the council plans to present its recommendations to government agencies like the Ministry of Electronics and Information Technology and the Department of Economic Affairs hoping that recommendations provide a workable solution for all the parties involved and wins the faith of the government once it is given a forum to present its ideas.
This is to note that Indian government has not given a clear and decisive signal on what decision it is going to take on cryptocurrency. It has often sent mixed signals to the stakeholders keeping them confused and questioned.
Even though the finance minister of India, Mrs Nirmala Sitharaman had dismissed the rumors of an impeding blanket ban on cryptocurrency saying a calibrated measure was the way to handle with crypto assets in the country, India’s central bank, the Reserve Bank of India has mostly been negative about cryptocurrency.
However, the critical stance of RBI is not new. It had imposed a ban on banks dealing with cryptocurrency assets back in 2018 which was however, later reversed by the Supreme Court of India in 2020. Although this time, Shaktikanta Das, the current governor of RBI had given slightly less negative indications about future of cryptocurrency in India in an interview recently.
It is imperative to say that that whatever final decision the government reaches upon, the Reserve Bank of India will be playing a major role in affecting that decision and hence, the council must have strong framework to convince both the RBI and the government for regulations instead of a ban.
A major proportion of cryptocurrency’s future globally rides on how India deals with it since the country has a population of over 130 crore people.